Company vs personal private health insurance in the UK
Employer-paid private medical insurance and a policy you buy yourself cover similar treatment, but they differ on who pays, how they are taxed, who controls the cover and what happens to your underwriting if you leave. Here is how the two compare in 2026.
The essentials in 30 seconds
- Who pays: company PMI is funded by your employer as a workplace benefit; personal PMI is bought and paid for by you.
- Tax point: employer-paid cover is usually a taxable benefit-in-kind reported on a P11D, so you pay income tax on its value — personal premiums are paid from already-taxed income with no benefit-in-kind charge.
- Leaving a scheme: when you leave, employer cover normally stops, but a continued personal medical exclusions (CPME) transfer can carry your underwriting across so conditions covered under the scheme are not re-excluded.
- Control: a personal policy lets you choose the excess, hospital list and modules; a company scheme is designed by the employer, though you can sometimes top it up.
Company PMI vs personal PMI
| Feature | Company / employer PMI | Personal PMI |
|---|---|---|
| Who pays | Your employer pays the premium as a workplace benefit (you may pay for added family members) | You pay the premium yourself from your own income |
| Tax treatment | Usually a taxable benefit-in-kind — the premium value is reported on a P11D and you pay income tax on it | Paid from already-taxed income; no benefit-in-kind charge on you |
| Underwriting if you leave | Cover normally ends when you leave; a CPME transfer can carry your underwriting continuity to a personal policy if arranged promptly | Stays with you regardless of employment; not tied to a job |
| Control over cover | Cover level, excess and hospital list are set by the employer scheme design | You choose the excess, hospital list and optional modules |
| Cost to you | No premium outlay, but income tax on the benefit value; cover stops if you leave | Full premium, but you keep the policy and control its design |
Indicative comparison for orientation only — not a quote and not tax advice. Tax treatment depends on your circumstances and current HMRC rules; check gov.uk or a qualified adviser. Scheme terms vary by employer and insurer.
What happens to pre-existing exclusions if you move from a company scheme
When you leave an employer scheme, the cover usually ends, and that is the moment your underwriting history matters most. If you simply take out a brand-new personal policy on fresh underwriting, any condition you have had — including anything that arose while you were on the company scheme — can be treated as pre-existing and excluded under a new moratorium or full medical underwriting.
A continued personal medical exclusions (CPME) transfer is designed to avoid that. It moves you onto a personal policy on the same underwriting basis you had under the scheme, so conditions that were covered remain covered rather than being newly excluded. CPME generally has to be arranged within a short window of the scheme cover ending, so it is worth acting quickly rather than letting cover lapse. Compare the new personal terms carefully, because the hospital list, excess and modules may differ from the employer plan.
For how underwriting types and exclusions work in general, see the private health insurance hub.
Topping up an employer scheme
Company schemes are designed to a budget, so they sometimes carry a higher excess, a narrower hospital list, or leave out modules such as outpatient, dental or extended mental-health cover. Some insurers let you top up the employer plan — either by buying an add-on that sits alongside the scheme, or by reducing the excess — so you get broader cover while your employer still funds the core.
Whether a top-up is available, and whether it is better value than a standalone personal policy, depends on the scheme and insurer. It is worth checking what the employer plan already includes before paying twice for the same benefit. If you expect to leave the scheme, also consider how a top-up interacts with a later CPME transfer.
Weighing up the wider choices first? Start at the private health hub.
Company vs personal PMI FAQs
Information only — not financial or tax advice. Tax treatment of benefits-in-kind depends on your circumstances and current HMRC rules; confirm details at gov.uk or with a qualified tax adviser. My Insurance Expert is not an FCA-authorised intermediary and does not arrange or sell policies. Last updated: 2026-06-13